September 21, 2011 (Shirley Allen)
Monthly mortgage delinquency rates declined by 2.5 percent in August after two consecutive months of increases according to the latest “First Look” Mortgage Report released by Lender Processing Services (LPS), which is derived from its loan-level database of nearly 40 million loans.
The total number of loans that are 30 days or more past due, but not yet in foreclosure, dropped from 8.34 percent in July to 8.15 percent in August, a decline of 2.5 percent. Despite the drop in the monthly rate, the delinquency rate was 4.11 percent higher than a year ago.
The drop in the delinquency rate equates to about 133,000 less loans that were delinquent in August, however, since foreclosure inventories remained virtually unchanged from July to August, the majority of those loans likely entered the foreclosure pre-sale inventory while the rest were cured, sold, etc.
The number of properties in foreclosure decreased slightly from 2,156,000 in July to 2,148,000 in August.
The “First Look” report contains highlights of the company’s forthcoming Mortgage Monitor report which will provide a more in-depth review including an analysis of data supplemented by in-depth charts and graphs that reflect trend and point-in-time observations.
Early highlights of the report include:
Total U.S. loan delinquency rate (loans 30 or more days past due, but not in foreclosure): 8.13% compared to 8.34% in July 2011
Month-over-month change in delinquency rate: -2.5% compared to 2.4% in July 2011
Year-over-year change in delinquency rate: 4.11% compared to -10.4% in July 2011
Month-over-month change in foreclosure presale inventory rate: 0.1% compared to -0.4% in July 2011
Year-over-year change in foreclosure presale inventory rate: 8.2% compared to 9.7% in July 2011
Number of properties that are 30 or more days past due, but not in foreclosure: (A) 4,249,000 compared to 4,382,000 in July 2011
Number of properties that are 90 or more days delinquent, but not in foreclosure: 1,866,000 compared to 1,899,000 in July 2011
Number of properties in foreclosure pre-sale inventory: (B) 2,148,000 compared to 2,156,000 in July 2011
Number of properties that are 30 or more days delinquent or in foreclosure: (A+B) 6,397,000 compared to 6,538,000 in July 2011
States with highest percentage of non-current* loans: FL, MS, NV, NJ, IL (FL, NV, MS, NJ, IL in July 2011)
States with the lowest percentage of non-current* loans: MT, WY, AK, SD, ND (MT, WY, AK, SD, ND in July 2011)
*Non-current totals combine foreclosures and delinquencies as a percent of active loans in that state.
(1) Totals are extrapolated based on LPS Applied Analytics’ loan-level database of mortgage assets.
(2) All whole numbers are rounded to the nearest thousand.
Tags: LPS, mortgage delinquency rate, foreclosure inventory, non-current loans